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Disintermediation refers to channel conflict that arises when


A) a channel member severs relationships with other channel members to work for or with a competing manufacturer.
B) channel conflicts are resolved by a third party.
C) a channel member bypasses another member and sells or buys products directly.
D) channel conflicts are resolved through a binding arbitration from a panel of representatives from all channel members involved.
E) the entire distribution chain is eliminated, when a company sets up its own wholesaler and retailer network.

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Apple now operates over 400 Apple retail stores around the world to sell its innovative products such as the iPhone and Apple Watch.Apple uses


A) dual distribution.
B) backward integration.
C) forward integration.
D) horizontal integration.
E) strategic channel alliances.

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Define and describe at least one similarity and one difference between dual distribution and a strategic channel alliance.

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Dual distribution occurs when a firm employs two or more different types of channels for the same product (Eg.,GE sells its large appliances directly to home and apartment builders but uses retailers to sell them to consumers).Dual distribution is used for a multibrand strategy.A strategic channel alliance is when one firm's marketing channel is used to sell another firm's products.A similarity between the two terms is that firms use both to reach different market segments in a more cost-effective manner.A difference between the two is that for dual distribution,a single producer selects the intermediaries to reach its target market segments,whereas in a strategic channel alliance,one producer uses the marketing channel developed by another firm (sometimes a competitor in a product class)to reach its target market segments.Strategic alliances are popular in global marketing,where the creation of marketing channel relationships is expensive and time-consuming.

Direct marketing channel refers to


A) the distribution of products and services directly from the manufacturer's production site to end users.
B) the traditional chain of distribution from manufacturer to retailer to consumer.
C) the use of agents that represent a single producer and are responsible for the entire marketing function of that producer.
D) a method of distribution that allows consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson.
E) a method of distribution that allows consumers to buy products through direct personal interaction with the manufacturer's representatives in order to provide more personalized service.

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A channel member (producer,wholesaler,or retailer) who coordinates,directs,and supports other channel members is referred to as a


A) channel champion.
B) channel general.
C) channel captain.
D) channel director.
E) channel coordinator.

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Though uninformed consumers may not appreciate the extra markups from channel members,the four utilities each provide methods of


A) channel intermediary development.
B) relationship management between channel intermediaries themselves.
C) value creation by channel intermediaries.
D) channel intermediary promotional efforts.
E) a way to recoup cost overruns.

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A textile artist can buy fabric,thread,and batting,create an heirloom quilt,and then sell the finished work to customers in a kiosk decorated with some of the quilts produced to entice customers who shop at the local mall.By designing the quilts and kiosk with aesthetic value,the artist creates __________ utility.


A) application
B) possession
C) time
D) place
E) form

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Risk taking as a transactional function refers to


A) unpredictable costs of transportation because of fuel prices.
B) product liability from poorly produced products that become defective.
C) the need to stock merchandise in anticipation of sales.
D) trying new promotional campaigns.
E) investments in new-product development.

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A contractual arrangement between a parent company and an individual or firm that allows the latter to operate a certain type of business under an established name and according to specific rules is referred to as


A) a corporate vertical marketing system.
B) a wholesaler-sponsored voluntary chain.
C) a retailer-sponsored cooperative.
D) franchising.
E) an administered vertical marketing system.

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Kraft Foods distributes Starbucks coffee in U.S.supermarkets and internationally.These firms are most likely using __________ strategy.


A) multichannel distribution
B) a direct marketing channel
C) a cooperative distribution channel
D) a strategic channel alliance
E) a dual distribution agreement

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Intermediaries perform facilitating function activities,which assist producers in making products and services more attractive to buyers.These activities include


A) producing, assembling, and distributing.
B) transportation and distribution.
C) buying, selling, and risk-taking.
D) assorting, sorting, and storing.
E) financing, grading, and marketing information and research.

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E

Industrial distributors perform functions that are most like which intermediary in the consumer products marketing channel?


A) manufacturers
B) retailers
C) agents
D) wholesalers
E) brokers

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Intensive distribution refers to


A) the distribution of products or services in markets where there are currently no other competitors.
B) the distribution of products or services where the producer owns the entire channel of distribution.
C) the density of distribution whereby a firm tries to place its products or services with only one retail outlet in a specified geographical area.
D) the density of distribution whereby a firm tries to place its products or services in as many outlets as possible.
E) the density of distribution whereby a firm chooses to place its products or services in very few retail outlets in a specific area to generate excitement.

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Which of the following is an element of total logistics cost?


A) new-product development
B) inventory
C) advertising
D) personal selling
E) market research

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Which type of contractual vertical marketing system involves small independent retailers forming an organization that operates a wholesale facility cooperatively?


A) retailer-sponsored cooperative
B) service-sponsored retail system
C) administered cooperative system
D) manufacturer-sponsored cooperative
E) wholesaler-sponsored voluntary chain

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Which type of marketing channel arrangement is especially good for a firm to use in global marketing where the creation of marketing channel relationships is expensive and time-consuming?


A) dual distribution
B) cooperative distribution
C) strategic channel alliance
D) global distribution alliance
E) multichannel distribution

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There are three degrees of distribution density,one of which is intensive distribution.What would best be considered opposite of this degree of distribution density?


A) exhaustive distribution
B) thorough distribution
C) selective distribution
D) concentrated distribution
E) exclusive distribution

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E

Which of the following statements regarding corporate vertical marketing systems is most accurate?


A) Corporate vertical marketing systems can use either forward integration or backward integration but not both.
B) Corporate vertical marketing systems increase distribution costs.
C) Corporate vertical marketing systems increase investment but decrease fixed costs.
D) Corporate vertical marketing systems are only effective with low-end consumer products.
E) Corporate vertical marketing systems offer more control over supply sources or resale of products.

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The practice that involves unloading products from suppliers,sorting products for individual stores,and quickly reloading products on trucks that will deliver the products to specific stores is referred to as


A) just-in-time (JIT) delivery.
B) intermodal distribution.
C) immediate response system (IRS) .
D) piggy-backing.
E) cross-docking.

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In an example of __________,Kraft Foods uses the distribution system of Ajinomoto,a major Japanese food company,to market its Maxwell House coffee in Japan.


A) a direct marketing channel
B) an industrial distribution system
C) a dual distribution system
D) a franchising operation
E) a strategic channel alliance

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